Saputo Wins Warrnambool Cheese & Butter

[icyfroth]

While capitalism dictates that to the victor go the spoils, it does seem a shame that an opportunity to create a global dairy giant based in Australia has been lost, with effective control of Warrnambool passing to our much-loved Canadian cousins.

It also seems strange that Murray Goulburn was effectively frozen out both by the board of Warrnambool Cheese and Butter and the ACCC.

Compare this to the fierce determination and focus of our other cousins, the New Zealanders, who worked out long ago that to be relevant in global agriculture, you have to be big, nimble, and at the risk of sounding xenophobic, in control of your own destiny.

Fund managers and investors alike bemoan the lack of choice in the Australian market, but we have just seen an opportunity to create a listed dairy giant pass us all by. Regulation is fine, but I think there are times when a little matter called national interest should come first.

Link To Article

Why/How was Murray Goulburn Frozen Out?

AS Canada's Saputo marches towards control of Warrnambool Cheese & Butter, it is worth considering whether the process, rather than the outcome, revealed shortcomings in the regulatory environment within which the bid unfolded.

The outcome was effectively determined by a press release on November 12 last year, when Joe Hockey announced he had approved Saputo's foreign investment application and cleared the way for its bid.

Nearly a month earlier, Victorian dairy co-operative Murray Goulburn had countered the opening offer for WCB by Bega Cheese with a bid of its own and about two weeks later, Murray Goulburn applied to the Australian Competition Tribunal, seeking a competition policy authorisation for its bid.

When Saputo all but wrapped up control of WCB last week, Murray Goulburn was still tied up in the ACT process, with the earliest possible date for a clearance still more than a month away. Effectively, it was unable to compete with Saputo for control of WCB.

So one regulatory process, the foreign investment authorisation process, cleared the way for a foreign bid in a very timely fashion while another, the competition policy process, kept the most viable local bidder from competing.

Link To Article

That's just criminal, and people should be out on the streets with placards protesting against it!

[boris1gary]

A sad day for Australian producer's, tighten your seatbelt Icy there will be a lot more to come.

[icyfroth]

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@boris1gary wrote:

A sad day for Australian producer's, tighten your seatbelt Icy there will be a lot more to come.

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A very bleak outlook. Wer'e so preoccupied with "the boats" in the meantime Australia is being parcelled off and sold to the highest bidder behind our backs. It can't be an Aussie bidder either, has to be a foreigner.

[boris1gary]

It's also very bleak that Tones fan club haven't bothered to post anything about your op Icy.

[freakiness]

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@boris1gary wrote:

It's also very bleak that Tones fan club haven't bothered to post anything about your op Icy.

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The OP is a Tone's fan club!

[boris1gary]

I can't speak for Icy, but in my humble opinion - not always - sorry if that offends you in any way Icy.

[icyfroth]

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@boris1gary wrote:

I can't speak for Icy, but in my humble opinion - not always - sorry if that offends you in any way Icy.

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meaning?

Your opinion is not always humble?

You're not alway sorry if you offend me in any way?

[freakiness]

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@icyfroth wrote:

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@boris1gary wrote:

I can't speak for Icy, but in my humble opinion - not always - sorry if that offends you in any way Icy.

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meaning?

Your opinion is not always humble?

You're not alway sorry if you offend me in any way?

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haha, meaning you're not always a Tone fan club member  😄

I think  😄   although I can't speak for the boris poster either   :D:D

[icyfroth]

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@freakiness wrote:

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@icyfroth wrote:

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@boris1gary wrote:

I can't speak for Icy, but in my humble opinion - not always - sorry if that offends you in any way Icy.

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meaning?

Your opinion is not always humble?

You're not alway sorry if you offend me in any way?

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haha, meaning you're not always a Tone fan club member  😄

I think  😄   although I can't speak for the boris poster either   :D:D

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Actually I'm neither a Lib or a Lab supporter. I believe both both parties are interchangeable and simply take turn and turn about in leadership so the Australian public thinks it has a choice.

Given a choice between the Rudd/Gillard/Rudd farce, though, Mr Abbott is my preference by far.

[boris1gary]

All of what you posted Icy.